Monetary policy operations for central banks are run through changes in the liability category of:

Question

Quizplus · Accepted Answer

Central banks conduct monetary policy operations by changing the amount of reserves in the banking system. This is done through open market operations, in which the central bank buys or sells government securities in exchange for reserves with commercial banks. Therefore, the liability category that is affected by these operations is reserves.

Monetary Policy Operations for Central Banks Are Run Through Changes